Spain will be paying its highest cost of borrowing since the creation of the euro. It will be selling its 10-year debt starting on Thursday as the the European sovereign debt crisis deepens and intensifies.
Spain's Treasury will be selling between 3 billion euros ($4.1 billion) and 4 billion euros of a new 10-year benchmark bond that will take its 2011 borrowing to almost 90% of the targeted amount.
Fears of US banks and their exposure, sent the US stock markets down. The Dow Jones Industrial Averages dropped almost 191 points while the NASDAQ shed almost 47 points. The fear that the European debt crisis is not contained and may seep its way into other global economies is mounting.
Although the financial sector of the markets took the worst hit, all sectors suffered as well. All of the thirty blue chip stocks ended the day in the red except of 3M, which was unchanged.
The Bank of England, fearing the failure of policymakers to reach an effective solution to the European debt crisis, slashed its near-term growth outlook and inflation expectations.
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